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S&P 500 Profits Have No Need for Your Stinking GDP

Even if the U.S. is indeed headed for the second dip of a recession, the S&P 500 might not suffer a big hit to profitability, according to a new note from S&P equity analysts.

That’s partly due to the long-term fall of the dollar, which has made U.S. exports more competitive for foreign buyers.

The weak dollar, coupled with the growth in overseas operations by the largest U.S. public companies, means corporate earnings and GDP are less correlated these days, says S&P equity strategist Alexander Young in a research note to clients.